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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36081)	2/5/2002 8:58:10 AM
From: j g cordes	Respond to of 68065

Re: 'strange selloff".. One thing which we need to pay attention to that hasn't been in the usual mix of market analysis is federal budget and military spending.. including those same funds which won't be spent on public projects. All military spending is inflationary, even if necessary. Tanks etc cost money to build and operate, and don't have the same lifetime return of doing productive work. The only time military adventures have a net economic return is when they conquer new economic resources or markets... the current situation doesn't appear to have that kind of economic payoff. Thus the monies being spent out of public resources is inflationary in an anti-inflationary environment.. probably a statistical breakeven. The stiumlus/liquidity provided by the Fedreserve disguises this effect because the whole system has more dollars to play with.. yet slower business, trade, growth, and investment around the world are showing themselves.